One of the effective methods for assessing whether a stock is undervalued or overvalued is by analysing key metrics such as the Price-to-Earnings (P/E) ratio and the industry P/E average. The P/E ratio or Price-to-Earnings ratio compares the current share price to the earnings per share (EPS) of a company, serving as a widely recognised indicator for determining the value of a stock.
When a company’s P/E ratio is significantly higher than the industry average, it may indicate that the stock is overvalued, as investors are paying a premium for its earnings. Conversely, a substantially lower P/E ratio relative to the industry average could indicate that the stock is undervalued, potentially signaling a buying opportunity.
Following are a few low P/E stocks that witnessed a high net profit growth of more than 400 percent YoY in Q4 FY25:
Insecticides (India) Limited
With a market cap of Rs. 2,559 crores, the stock moved up by around 0.6 percent on BSE to close in the green at Rs. 879.3 on Friday. Insecticides India reported around 32 percent YoY growth in its revenue from operations from Rs. 272 crores in Q4 FY24 to Rs. 359 crores in Q4 FY25, while the net profit increased by nearly 75 percent YoY to Rs. 14 crores from Rs. 8 crores, over the same period. Further, the stock has a P/E ratio of 18.2, compared to the industry’s P/E ratio of 33.6.
Insecticides (India) Limited is involved in the business of manufacturing activities of agro chemicals, pesticides and technical products for agricultural purposes, serving both domestic and international markets.
Pokarna Limited
With a market cap of Rs. 3,473 crores, the stock moved up by around 4 percent on BSE to close in the green at Rs. 1,120.15 on Friday. Pokarna reported around 62 percent YoY growth in its revenue from operations from Rs. 162 crores in Q4 FY24 to Rs. 263 crores in Q4 FY25, while the net profit increased by nearly 269 percent YoY to Rs. 59 crores from Rs. 16 crores, over the same period. Further, the stock has a P/E ratio of 17.7, compared to the industry’s P/E ratio of 18.8.
The company is principally engaged in the business of quarrying, manufacturing & processing and selling of granite & manufacturing and selling of apparel under the brand name ‘Stanza’. Granite manufacturing & processing units are 100% Export Oriented Units (EOUs).
National Aluminium Company Limited
With a market cap of Rs. 34,161 crores, the stock moved down by around 0.5 percent on BSE to close in the red at Rs. 186 on Friday. NALCO reported around 47 percent YoY growth in its revenue from operations from Rs. 3,579 crores in Q4 FY24 to Rs. 5,268 crores in Q4 FY25, while the net profit increased by nearly 107 percent YoY to Rs. 2,067 crores from Rs. 997 crores, over the same period. Further, the stock has a P/E ratio of 6.51, compared to the industry’s P/E ratio of 19.2.
National Aluminium Company is a Navaratna Central Public Sector Enterprise (CPSE) under the Ministry of Mines, Government of India. The company is engaged in the business of manufacturing and selling alumina and aluminium.
Control Print Limited
With a market cap of Rs. 1,202 crores, the stock moved up by around 3 percent on BSE to close in the green at Rs. 751.5 on Friday. Control Print reported around 21 percent YoY growth in its revenue from operations from Rs. 101 crores in Q4 FY24 to Rs. 122 crores in Q4 FY25, while the net profit increased by nearly 458 percent YoY to Rs. 67 crores from Rs. 12 crores, over the same period. Further, the stock has a P/E ratio of 11.7, compared to the industry’s P/E ratio of 24.5.
Control Print Limited is engaged in the manufacturing and supplying of coding & marking machines, related consumables, and surgical/N95 masks. It has manufacturing facilities in the State of Himachal Pradesh, Assam, apart from an overseas Branch at Colombo, Sri Lanka.
Written by Shivani Singh
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